40 REAL ESTATE OBJECTIONS HANDLED DEVELPING A CENTER OF INFLUENCE

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1 1. If I list my home with you and buy my next home from you, will you cut your commission? You know, I can appreciate that, and I want to be up front with you and say NO, I will not cut my commissions, and for one very simple reason. As a professional my time has a certain value and I only work with people, like you, that realize the value of my service.and before you say anything, think about this If an agent is willing to cut his or her commission, just like that, how well do you think they will hold up when it comes to negotiating the best possible price for your home? I want to demonstrate, up front, how tough I am going to be for you Therefore, cutting my commission is not an option does that make sense? 2. I have to keep my promise to the agent from which I originally bought the home. That s great, I can appreciate your loyalty and that is a quality that I respect in people so, I m curious, let me ask you this Has there ever been a time when you decided to buy something or do something and a friend said, Hey, no problem when you need help, I can do it and in the end, because you didn t check around, you really didn t get what you wanted Have you ever been there before? (YES) Well, I think you might find that this time is just like that time, and with that in mind, I m sure you can see the importance of having me over to give you a second opinion that wouldn t hurt anything, would it? The Mike Ferry Organization Page 1 of

2 3. I have seen this marketing plan from many different agents.what makes yours different? I d level shift You know what? You re right! There are only a certain number of things any agent can do to get a home sold and I think the final decision is not based on what I do differently I think the real issue is how you feel about the agent representing you So tell me, what qualities are you looking for in an agent? Did you see how I shifted from What do you do different, to What qualities are you looking for? Top agent alternative: My results! 4. Why is your price so much lower than the other agents that we have talked to? I mean, they have comps that show higher prices than yours? It s kind of confusing isn t it? I mean, you interview four agents and you get four different prices... right? (Yes, why is that?) You are probably thinking why did this person come in with such a low price? Doesn t he or she want to get our listing? Well, my answer is Yes and No. You see there is a very big difference in the way that I operate and the way that most agents operate. Most agents manipulate the computer to show figures that they think you want to hear. Why? Well, most agents don t do much or get much business. Getting your listing makes them feel like they are accomplishing something Whereas, I, on the other hand, sell homes, non-stop, all day long. Do you want to know why? (Sure) I tell nice people like you, the truth. Did you know that only % of the homes that are listed for sale actually sell? (No, I didn t know that) There s a very simple reason, do you want to hear it? (Yes) The Mike Ferry Organization Page 2 of

3 Most agents do not have many listings. Therefore, convincing you to list your home with them becomes very important. That s why they ll tell you whatever price they think you want to hear, even if they know six months from now, you will not be happy with them at all because no buyers will look at a house that is over priced Does that make sense? My comps show the price I have indicated. I will take the listing if you will agree and sign an acknowledgement form tonight that you will reduce the listing to my price in 30 days. I would rather see you turn down 10 offers than never get one. They emphasize listed prices. All I am concerned with is what is sold and has closed escrow. You wouldn t want to base your price on erroneous info, would you? There are two placed you can price your home You can list it where it sits or you can list it where it sells. Which is better for you? 5. I ll sell my home when the values go up! If a prospect has no reason to sell their house then that is a condition. You can t overcome conditions. 6. How much advertising will you do, because I want a lot of advertising? I understand that advertising is a concern Are you familiar with the difference between passive and active marketing? (No?) Passive marketing is basically sitting around with your fingers crossed waiting for a buyer to shop up and buy your home The Mike Ferry Organization Page 3 of

4 Passive marketing is holding open houses, sending out flyers and advertising in the newspaper You see, these methods are passive and you can t predict if they will work or not. Yet, agents that don t want to work at getting your home sold will insist that they have sold many homes this way And do you know what? I agree, you can get a home sold that way But, you can t guarantee it. Do you understand what I mean by passive, basically sitting around waiting to get your home sold? Active marketing on the other hand is much more aggressive and very predictable. I will be on the phone every single day and call 10, 25, and 50 even 100 people asking them if they would like to buy your home, if they know someone who would like to buy your home or if they would like to sell their house Do you know why I ask them if they would like me to sell their house? (Why) You see, the more signs I have out in the community, the more buyers that will call on those signs. The more buyer calls I get, the more people I can show your house to Now, which way, passive or active do you think gets more homes sold? Would you like me to spend all my time and effort doing what is proven to get your home sold or would you like me to sit around with my fingers crossed hoping a buyer happens to call? I advertise to the brokerage community; it has the qualified buyers for which we are looking. (Passive vs. active etc.) 7. You re too busy, you have so many listings, and we want someone that can give us the attention we deserve. I d level shift this one, I d say The Mike Ferry Organization Page 4 of

5 I can appreciate that and you probably haven t had a chance to think about the advantage I have over my fellow agents in town You see, the more listings I have, the more signs I have on the street. The more signs I have on the street, the more calls I get from buyers and, of course, most of those buyers don t buy the house they call about and many of them will be very interested in our house. Can you see the advantage of listing with an agent that has signs on the street working for you? It s funny you should say that Benjamin Franklin said, If you need something done, ask a busy person. 8. I want to find a house before I put mine on the market. I agree, finding your new home is important and the unfortunate thing is it may take as long as three months for your home to sell. Then it will take another two months to get all of the paper work done and, by that time, any home that you would have found would already be sold. Let s get the listing agreement signed right now and get to work on getting your home sold tonight, so you don t have to wait any longer than is necessary to get moved into your new home sound good? I understand your concern about your new home. I ve brought you a list of current listings that fit your need. Check these out and we will start looking. Once this house goes under contract, we will put a contract on your #1 choice Close both homes the same day One move for you! You are in good hands. I will take care of you. The Mike Ferry Organization Page 5 of

6 Terrific! Have you seen a home or are you ready to make an offer on one? (No) Great, let me go ahead and schedule a time with my lender and buyer/showing agent. They can handle that for you. Let s go ahead and write up the contract now. 9. You don t handle homes in our price range. I d level shift You re right, I don t sell a lot of homes in your price range and that s exactly why I m here tonight I usually sell homes in lower price ranges and what I find is after I sell my client s homes, a great many of them move up to your price range, therefore, it only makes sense that the next logical step for me is to start to sell your price range as well, considering I already have a relationship with many of the buyers that will be interested in your home does that make sense? 10. I need to net this amount in order to move, I have to be at my new job in 90 days, but I can t afford to buy a new home if I take a loss. I can appreciate the position that you are in. Many people in our area are in the same position and you know I m curious. Has there ever been a time when you knew you were going to have to make a sacrifice? I mean, you knew it was going to be tough and in the end, after analyzing all of your options, you realized that there was only one thing to do Put our head down, grit your teeth and go for it But you found that in the end, it all worked out. You made it through the tough times and life went on, maybe en better than before Have you ever been there before? (Well, yes) The Mike Ferry Organization Page 6 of

7 This time is just like that time as you can see, the competitive market analysis shows that there is no way anyone is going to give you what you need to make this move My question is this. Is it more important to get out from under this house, take the new job and work through the tough times or are you in a position to keep making mortgage payments on this house for a couple of years until property values go back up? Help your prospects to see that they have probably been in tough places before and made it through and this time is no different. 11. If I have to sell at that price, then I will sell it myself. I can appreciate your frustration with the market place and I was wondering, what specifically causes you to believe that you can sell this home yourself, when less than % of the home listed for sale with Real Estate Agents are selling? (I don t know but, I can t afford to sell at that price) Ah-ha! The real objection comes out! Now dig more, find out the true motivation and handle the objection the way I have already taught you. No matter what you ask for, the homeowners are trying to save money by selling their homes themselves. I can create more competition through the brokerage community. Here s a derivative of the same one 12. If we have to sell that low we will sell it ourselves and pay 3% to the agent that sells it. I completely understand your point of view Mr. And Mrs. Seller and it sounds like you haven t been involved in this kind of transaction in a while can I tell you why? (Sure!) Agents work with buyers because it is easy. You show the house, the agent writes an offer and the agent on the listing side handles the next three months of legal paperwork trying to get the deal closed Does that make sense? (Yes) The Mike Ferry Organization Page 7 of

8 If you list it for sale yourself, who will follow up with the three months worth of legal paperwork you? If so, what agent will want to risk the fact that you have never done it before? Let me ask you this If you were an agent, would you rather show homes that were listed with professional agents that worked to get deals closed? Would you rather show a home and keep your fingers crossed, hoping that you don t get sued by the buyers because some legal aspect was overlooked by the homeowners and the transaction didn t get done Which would you rather do? Do you see my point? (Yes) Your idea sounds valid. It just doesn t fit into today s lawsuit-happy reality I m sorry. Are there any other questions I can answer before you sign the listing agreement? That may sound good, but then nobody is pushing your property. If nobody pushes it, nobody shows it. If nobody shows it, then I guess it won t sell. 13. We don t want to list at a price that will get it sold in one week. First of all, why would you tell them that it was going to sell in a week, unless they told you they needed to be gone in a week? The only reason you would get that objection is if you were getting overly egotistical and ambitious and bragging I ll sell your home in a week It is more important to listen to when they want to be gone and tell them that your price will get them there on time and maybe even a week or two sooner! You created that objection yourself, so I m not going to handle it. I d rather turn down 10 offers than never get one I ll work with you to get the right price for your home. The Mike Ferry Organization Page 8 of

9 What about this one 14. We can always come down in price later. You re right, and I think you need to take into account how homes get sold. You see, if we come out of the shoot with your home overpriced all of the agents that show properties will instantly write you off as non-motivated sellers Can I explain what that means from an agent s perspective? (Sure) The higher a price is on a property, the less a seller needs to sell it at least that s what the agents believe purely from their past experience Now, a non-motivated seller means, that even if you come down in price later, two things will happen. Most agents won t even realize your home has been reduced. Now, you might say, can t we send them a flyer telling them that it s been reduced? Yes, we could send everyone a flyer telling them that the prices have been reduced, but agents get 500 flyers a week and there is a good chance it will go unnoticed. If they see that you had the home priced real high in the beginning that will tell them that you were kind of unrealistic when we listed the property, meaning that you didn t believe that what I was saying was true All agents interpret this as trouble when it comes to getting the deal closed. Do you understand why? If we price it to sell right from the beginning, our odds of getting agents to show it are much higher. By the time the buyer for your home will have bought another. Do you want to lose that buyer? 15. We aren t quite ready yet, we need to finish a couple of projects around the house before we put it on the market. The Mike Ferry Organization Page 9 of

10 I would say I agree that making sure the house is up to par is important and you probably didn t realize how little effect it will have on getting your home sold Let s get your home listed for sale, get some of the top brokers in town to show the house to prospective buyers and get their feedback The good news is you ll find that maybe only one or two of your projects actually need to get done.if any at all It sure would be nice to not have to spend a dime to get out of this place wouldn t it? (Yes) Great, which would be better for you, tonight at six or 7:30? Great! Why don t we complete the paperwork now and while you are doing your projects I ll get the flyer done and paperwork processed so when you are ready I will be ready too! We ll show it in 2 weeks. How much money will you spend on those? You ll probably not make that money back. Let s just sell as is and save you the time and money okay? 16. Will you cut your commissions, other agents will? You know, you re right, there are a lot of desperate agents out there and I m a little concerned can I tell you why? (Yes) Do you own anything more valuable than this home? (No) Could you say that it is your most valuable possession? (Yes) If an agent is so desperate that they are willing to broadcast the fact that they don t think they have any value as a Realtor, then I m confused. Is that the type of person you want sitting across from the negotiating table trying to negotiate you a better price? The Mike Ferry Organization Page 10 of

11 We are talking about a person who has already admitted that he or she doesn t even see value in himself or herself... Is that the type of person you want to represent you in the most valuable transaction of your life? (No) Good. If that was the case then I should not have even come over, considering I work 14 hours a day and my assistant works 8 hours a day to get your home sold and that s very valuable don t you think? Here s on for the top producers, I have to say something before I give it to you. The more conviction you have the less you will get objections like this. In fact, this objection is purely a function of a weak presentation If you sound hesitant; your prospect will begin looking for ways to exploit your weakness. I would interpret this objection as your prospect telling you I don t think you have any value so you better prove it to me. They may feel they are worthless. If they will reduce their price at the listing table, what will they do at the negotiating table? I will be tough and professional on both my fee and your price, particularly at the negotiating table. Commissions aren t negotiable with agents that sell homes daily. They are only negotiable with realtors who don t believe in the services that they offer. Now you told me you had to be gone in 90 days, right? You need a strong service agent that sells homes, right? Here it is 17. It seems like 7% should be enough to cover your expenses without paying an additional $250 transaction fee. I would level shift from money to peace of mind I d say The Mike Ferry Organization Page 11 of

12 I can understand your concern. It is a lot of money so, I want you to look at it this way Don t look at the money. It s really the peace of mind you will experience when you use my service Unfortunately, most agents don t run their business like a business. That means they don t have all the support necessary to guarantee your home will sell and what is even more important than that is having staff necessary to get the deal closed. Did you know that only % of the homes listed for sale actually sell? (No) Well, even worse is this, did you know that only % of the homes that get offers actually end up closing? (No) The reason you are going to pay me more is simple. Every house I list for sale sells, and my staff gets them closed so you walk away with a nice big check in your hand I mean, that s what you want isn t it? I have a licensed specialist who does nothing but track your transaction on a daily basis. You can lose more than $250 by not having someone watching your deal daily. One agent can t do it all, it s impossible. I understand. Remember I get 3% of the 7%, which I split with my company then I take off for my expenses. The transaction coordinator is an insurance policy that your home will close escrow, but if you d rather take a chance When you get a loan you pay points and a processing fee. It s the same thing. Isn t it worth $250 to have me and my six assistants working for you? Here s one on the list that is pretty hard The Mike Ferry Organization Page 12 of

13 18. Why don t you advertise? Everyone else we talk to says they do the same things as you plus they advertise. I d say Obviously that is a valid concern and I m glad you brought it up You see, I want you to realize that if an agent tells you that he or she does the things that I say I m going to do, which is to Actively prospect daily every single day to get your home sold Then he or she is more than likely stretching the truth a little. Can I tell you why I think that? (Sure) Agents that advertise a lot don t want to work. So, what these individuals will tell you is that they actively prospect every day to impress you But, let me ask you a question If you could sell a home without spending 50% of your money would you? (Yes) I mean, all smart business people would wouldn t they? (Yes) Either they are not smart, or they aren t telling you the whole truth does that make sense? Here s another one on the list 19. You don t hold open houses Why? I would say exactly the same thing I said about advertising and talk about passive versus active marketing. Here s one you were guaranteed the last interview and after all is said and done they say. 20. We still need to interview one more agent. (Even after they promised you would be last) Okay? First of all that is not the real objection they are just saying to you The Mike Ferry Organization Page 13 of

14 We don t see why we should pay you money to sell our home that s why you should leave. So, what we need to do is flush out the real objection. Use the What specifically causes you to believe but, only if you are in good rapport, otherwise it might be a little too strong For a less direct version that will still flush out the real objection try something like this You know I can appreciate the fact that you want another opinion, and the fact that I was told that I would be the last agent interviewed only tells me one thing? Do you want to know what it is? (Yes) Somewhere, somehow, I have not completely convinced you that I can sell your home. So tell me What is it, specifically, that is stopping you from signing the listing contract with me tonight? Now, you re going to get the real objection and you can use one of the patterns I taught you to handle it I can appreciate that before we met today that you set up another appointment with another realtor. I m sure you will agree that my qualifications will be tough to beat. I ll be happy to call the other agent, cancel your appointment and it will be one less delay in getting your home sold. Agents work together. I will cal and tell him/her your home is listed and they can bring their buyers anytime. Here s another objection for those of you trying to convert your real estate business into a real business. This means you are asking your prospects to come into the office for appointments. The Mike Ferry Organization Page 14 of

15 What if the person says 21. It is important to us that you see our home, even though you don t think it will make a difference in price. We want you to see it. We will only meet with you at our home. The only time you get this one is if you are using the Mike Ferry Appointments in the Office strategy. Here s how I would handle it. I understand that seeing your home is important to you and that s why I m willing to make an exception for you under one condition If I decide to come over to your house and I present something that makes sense to you and you understand exactly how I m going to get your home sold, and you feel comfortable with it are you going to list your home for sales with me at that point? If the answer is yes, go! If the answer is maybe, then you need to decide what you want to do. Why don t I come by on my way to the office tomorrow morning, I ll look at it then, and see you here at 5:00 p.m. tomorrow night. That way I can show you our office set-up? I will see your home once it s listed. You see I spend all my time out in the field looking for buyers to sell my listings. So, when your home is listed, I will be doing the same thing. What if they say this one 22. We want to have an exclusion in the listing contract in case our company, friend or neighbor wants to buy it. The Mike Ferry Organization Page 15 of

16 I d say I agree that it s important to be thorough when we are filling out this contract and let me ask you this Why haven t you already sold the home to your company, friend or neighbor? (No one has made us an offer) Your personal marketing hasn t worked and that s why you re hiring me is that right? (That s right) So, I m curious as to why I should waive my commission. If my marketing works well enough to convince your company, friend or neighbor to buy it isn t that what you are paying me for in the first place? Aren t you hiring me to let the public know your home is for sale and convince people that they should buy it? So, why would I cut my commission if my marketing works? You have 24 hours to let them know you re listed. Call them. They do or they don t. Here s one 23. We want to compare what you are saying to other Realtors I d use the what specifically pattern. Great! I think that is one of the best things that you could do and before I go Tell me, what is it specifically that is stopping you from picking up that pen and signing your home with me? (We re just a little shocked by the price) Hey, I understand and let me ask you this If I can help you to realize that your home will not sell for a dollar more than what I have told you If you felt completely satisfied that it was true would you still want to waste your valuable The Mike Ferry Organization Page 16 of

17 time talking to another Realtor or would you just list we me tonight?" (Well, I guess if we felt comfortable, we would list with you tonight) Great! Then simply go back through the CMA and convince them. Next one on the list 24. Why should we choose you? The only way to answer this one is to know what makes you different from other agents. Since that is different with every agent I ll leave that one up to you. Next one on the list 25. We want to think it over I would force them to make the general more specific. I can appreciate that, making a logical decision is important so tell me, what is it specifically that you re going to have to think over? Now, they will give you the real hidden objection and you can handle it using the patterns you have already learned. Next one on the list. 26. An expired listing says The last agent never showed our home himself and neither did anyone else from his office. Did they promise you that they would be showing your home non-stop? (Yes) Well then, I can appreciate what you re telling me you see I promise you I will not be showing your home! Do you want to know why? (Yes) The agents in my office are not part of the top 100 agents in the area that sell 88% of the homes listed for sale. I m curious Did you want me marketing your property to the people that sell the homes or the agents that just do okay? (The agents that sell the homes) The Mike Ferry Organization Page 17 of

18 That s why I promise to market your home to the agents that sell homes and not to the agents that don t is that okay with you? (Yes) I thought so. You re kidding! Next one on the list is from a FSBO 27. We will only list with agents that have brought clients by while we were selling on our own. I can understand why you might think that is a smart thing to do I mean it only seems logical doesn t it? (Yes) You re right, it does seem logical, unless you know how the real estate business works can I let you in on a little secret? (Sure) Well, there are two types of agents listing agents and buyers agents. Of course both listing and selling, but let me ask you this You want to list your home for sale and get it sold, right? (Right!) Then you want an agent that knows marketing does that make sense? (Yes) Agents that take buyers to FSBO s aren t marketing agents, they are buyers agents They specialize in selling one-on-one. So, I m curious, which do you think is going to get your home sold An agent that tries to sell people one at a time or an agent that sells to the masses trying to pinpoint that one perfect buyer for your home? I m sure no other agent even took the time to explain that to you did they? (No) Do you see why it makes sense to list with an agent like myself that spends all day marketing your property on a mass scale? Next one on the list is from a potential FSBO The Mike Ferry Organization Page 18 of

19 28. We want to try selling it ourselves. I totally understand the thought of trying to get a home sold yourself I mean, let s face it saving that commission can mean some good money in your pocket right? (Right!) So, I m curious, are you familiar with the difference between passive and active marketing? (No) Real quick Passive marketing is basically sitting around doing nothing like, holding open houses, sending out flyers or advertising in the newspaper Were you thinking about doing any of these things? (Yeah) I was afraid of that! These methods only work about 25% of the time! Yet, agents sell this concept as if this was the answer to all your problems right? (Right) Which then makes you think well, what s so hard about that I could do that right? (Right) The problem is this doesn t get a home sold anymore Do you understand now what I mean by passive sitting around with your fingers crossed waiting for the buyer? Active Marketing, on the other hand, is literally getting on the phone every single day and personally contacting as many people as I can 25, 50, even 100 a day. The key is asking them if they would like to buy your home, if they know someone who would like to buy your home, or if they would like to sell their home. Do you know why I ask if they would like to sell their home? Because the more signs I have the more buyer s calls I get to show your home does that make sense? Now which way passive or active do you believe will get more homes sold? The Mike Ferry Organization Page 19 of

20 And you understand that I am doing active marketing on you as we speak, right? So, how many people do you think you could call a day to try and get your home sold and by the way have you ever done telephone soliciting before? You can try it. Lots of people do. It is like going to Las Vegas. Millions of people go, and every now and then someone hits the jackpot, but the vast majority of people lose money or Las Vegas wouldn t be there. Every now and then a seller hits the jackpot, but the vast majority needs an agent or the real estate industry wouldn t be here. Let s talk, okay? John, you are an attorney and try cases in court daily. I can t imagine walking in and trying the case myself. I am a professional real estate agent. I know what I am doing. I am here to release you from the extra stress. I have a record 98.8% full contracts. I earn my commission. I bring you top dollar. I close the deal. Next one on the list 29. We have a good friend in the business. I m going to have to steal my Dad s brilliant one I can appreciate that, almost everybody does, so when would you like to see how 85% of the homes I list for sale sell and why only 40% of the homes listed with other agents sell tonight at 6:00 or tonight at 7:30? Your friends will want the very best for you. I will be happy to call them for you. Are you willing to jeopardize your friendship? The Mike Ferry Organization Page 20 of

21 You owe your friend friendship. You owe me nothing. But you owe yourself the best. Don t you want the best agent working for you? Now, this is an unusual one, but very relevant for big Mike Ferry Offices other agents from your office have called today; I wish you would just lay off. I d say I can understand your frustration and are you beginning to realize that our office gets the job done? (Yeah, but you re driving me crazy) I agree it s a living nightmare isn t it? (Yes) And I m sure you can see that when you list your home for sale with one of the agents in our office, you are putting one of the most powerful real estate teams in the area to work for you. I m curious, did you want a group of wimpy, non-aggressive agents working to sell your home or would you rather have hard-core, aggressive agents like those in our office? Our company wants to be sure your home gets sold, as you can see we are the most aggressive agents in town. When today can we get together? How about this one 31. We told you we weren t going to list our home until next year! Why don t you stop calling, we will call you when we are ready! Well, my friend, this is a condition that you have created! The Mike Ferry Organization Page 21 of

22 If you write a follow up letter that prospects find valuable, then you can call them every month and talk to them about what you wrote. But, since you send your regular old real estate stuff that everyone sends and on one cares about (especially your prospect) you just look like a pest and there isn t much you can do about it! People s plans change quite often and you may not have my name handy if you re needs change. This aggressive approach is what you will need to find the right buyer for your home. Because we find people s plans change we like to keep in touch. Who do you know who is ready now that I can contact? Next one 32. Your office is not close to our home. This sounds like a smoke screen, so I m going to flush them out I agree, it s not right around the corner from your home and tell me, why is that important to you? Now you ll get the real objection more service, less cost, whatever. Another one 33. We ll list after the holidays. I d say I think that s perfectly valid and tell me, how many days during November and December are you going to want all to yourself? (About five) Five, that s great. The Mike Ferry Organization Page 22 of

23 Now, did you know that exactly % of the homes listed for sale actually sell? (No) Did you know that right now there are homes listed for sale? (No) Did you know that the Board of Realtors showed that last year, more homes came on the market in spring than any other time of the year? (No) So, I guess my question is this if I promise to keep everyone out of your hair for those five days would you still want to compete against potentially 6,000 homes for sale in the spring or the 2,000 homes for sale now if you knew that nobody or nothing would disturb you at your request? Let s get a jump start on our competition. Why not complete the paperwork now, I ll get the flyer made and paperwork processed and will line up buyers. So when you are ready we ll be ahead of the others who are just getting started. We re getting close only 8 more on my list Here s one you get from Expireds all the time 34. We re already committed to another agent. I d say Great! So, you have already signed a listing agreement? (Well, no) So, you are not committed, you are just promised right? (Right!) You know I really don t care if you list your house with me If you re thinking of interviewing more agents for the job of selling your home it is vitally important that you understand the different marketing approaches so you don t get burned the next time You don t want to get burned again do you? The Mike Ferry Organization Page 23 of

24 So let me ask you this Do you know the difference between passive marketing and active marketing? (No) You don t! Passive marketing is basically sitting around doing nothing like, holding open houses, sending out flyers or advertising in the newspaper. Did your last agent use any of these methods? (Yeah) I was afraid of that! These methods have been ineffective! Yet, your last agent sold it to you as if this was the answer to all your problems right? Do you understand what I mean by passive basically, sitting around with you re fingers crossed waiting for the buyer? Active marketing, on the other hand, is literally getting on the phone every single day and personally contacting as many people as I can 25, 50, even 100 a day. The key is asking them if they would like to buy your home, if they know someone who would like to buy your home, or if they would like to sell their house Do you know why I ask if they would like to sell their home? Because the more signs I have the more buyers' calls I get to show your home that makes sense doesn t it? Now, which way passive or active do you believe will get more homes sold? And you understand that I am doing active marketing on you as we speak, right? Got them! I don t think I have explained what I m doing when I give the comparison between passive and active marketing. That s what we call a future pace basically what my objective is is to cut the other agents off at the knee caps by educating the customers to the realities of the market place. Now, when they are sitting in front of the other agent, what question are they going to ask? How many people do you call each day? The Mike Ferry Organization Page 24 of

25 Make sure you have made the right commitment by seeing me and then making your decision. If they have better qualifications than me you can go ahead and list with them. Here s one off the list what is this, an objection or a condition? 35. We want to wait for the market to come back before we try and sell it again. Can you get around the fact that they don t want to sell? No! But, and I mean BUT, you may want to keep digging and see if they have an underlying motivation that we don t know about that is forcing them to sell now! The fact is if you don t know how to match peoples communication patterns, they oftentimes won t feel comfortable telling you the truth and so you need to dig more! In today s economy the market is going to do one of two things; either remain the same or continue to go down, so you see waiting just doesn t help does it? Here s one from a FSBO 36. I m getting a lot of interested buyers through my house; I think I ll be able to sell it in a week. So, what do I need you for? You tell me Objection or Condition? CONDITION!!! If they can sell it themselves what do they need you for? All you can say is this If you don t sell it, when will you be interviewing agents for the job of selling your home? Find out when and keep following up! The Mike Ferry Organization Page 25 of

26 Here s one you get during a negotiation 37. This offer is too low; we re going to wait for a more reasonable offer. Use the What s Important About questions that you learned in the Over the Phone training or off my Telephone Sales in the 90 s tapes. 99% of the time your first offer is your best. Are you willing to roll the dice for a 1% chance? We are lucky to have an offer in today s economy. We could wait, and maybe there will be another offer, but it may take 4 months, 6 months, maybe even more, and even then the offer could be even lower. 38. You ve lowered our price three times already and it s still not sold. How can you ask us to drop our prices again? I d say Your frustration is valid. I mean the marketplace is slipping out from underneath you So, let me ask you this When your neighbor s home, which is exactly the same model as yours, sells for $5,000 less than you are asking Who would pay more? Even more importantly there are 3 other properties on the market, just like yours. One property is listed for $1,000 less than yours, another is $2,000 more than yours and the last on is $1,500 less than yours. If anybody is going to buy a 3 bedroom, 2 1/2 bath with a 2 car garage, it will be the home that is priced the lowest. The Mike Ferry Organization Page 26 of

27 You hired me to tell you the truth and get your home sold. If I could sell it for more, don t you think I want a higher commission? I m sorry reality is so painful? If you would like, we could cancel our listing agreement and I could give you the names and numbers of a couple agents that specialize in overpriced homes that never sell. Is that what you want or do you still want to work with someone that is on your side and tells the truth? At which point they may throw out the next objection on our list 39. If we lower the price any lower, we won t have enough equity to move. Which again we must resort to touching their motivational buttons Let me demonstrate the What s Important About questions for you. What s important about moving? (I ve got that new job I have to get to) A new job, that s great! So, how s that important to you you know, the new job, I mean, what will that do? (Well, I m going to make more money and I ll be able to give my family the life that it wants.) So, you re going to make more money and give your family a better life that s exciting, isn t it? (Yes) So, ultimately, you re working at your new job, making lots of money, you are providing a great life for your family. What will all of this do for you? (I don t know, I guess it will just make me happy) Isn t that a great feeling? (Yes) So, fortunately, to get you one step closer to Just being happy, your providing a great life for your family and your making lots of money at your new job, all we need to do now is simply make the sacrifice and lower your price, so then I can help you get what you want in the time you want won t that be great! (Yes, I guess that s what we have to do) The Mike Ferry Organization Page 27 of

28 If you really need to move, you will have to adjust your expectation level for your new destination. I can help you find something suitable. By the time your equity flows in your current home, prices will be higher everywhere else and you have the same problem. Buyers don t care what you are going to net. Will you be concerned about what the seller nets when you purchase. Now we made it! The last objection on the infamous list! It s a price reduction objection, they say 40. We have a unique home; the right buyer just hasn t come through yet! Okay, here we go I d say You re right! You do have a unique home and I hate to tell you this but at this price, we will probably never get the right buyer in here can I tell you why? (Yes) Because 90% of all buyers are represented by Real Estate Agents and Real Estate Agents will qualify the buyer to find out how much they want to spend, how many bedrooms, how many bathrooms, what amenities they want and so on The problem is the unique qualities of your home do not show up on the computer where the Real Estate Agents get their information Meaning that based on your price, the number of rooms, baths and amenities you will not get anybody through here no matter how hard I market to these agents. In their mind, it isn t the best buy on the market, they feel they are not serving their clients do you see my point? The Mike Ferry Organization Page 28 of

29 That s the very reason you need me to maximize your exposure and get enough buyers through that will ferret out the buyer looking for something different. Buyers aren t looking for a unique home; they re looking for the best priced homes. Are you getting the picture You can handle almost any objection that you come across if you simply practice using the patterns Always, always, always agree with your prospects that their concern is valid using I can appreciate that I agree I understand That s a valid concern Tell them things like, Most of my customers bring up that same exact point just before they list their homes with me. Then, remember never, never, never use the word But It basically tells the prospect that they are wrong and if you tell them that they are wrong, then they will naturally look for how you are wrong and that s the last thing you want to happen Use the word And to transition into your objection handling patterns. That way, after you tell the prospect that their concern is justified or basically okay, they will look for how you are justified in what you say to them Always remember to use basic human nature to your advantage. So, now that you have validated your prospect and used the work And to transition, you can use one of these three patterns to handle the objection The Mike Ferry Organization Page 29 of

30 First of all, always break the generalization down to the specifics using reverse inductive logic or anti cause and effect language Use the pattern What specifically causes you to believe? Especially when they say things like Your office is so small, we were thinking of listing with a larger office with more agents. You can say What specifically causes you to believe that a larger office has a better chance at selling your home than a smaller one? This way your prospect can tell you what they are really thinking and you can gently show them how they have been misinformed. The second pattern we need to review is how to use your prospects past experiences to your advantage. You say Has there ever been a time when Then, explain a similar situation Get agreement that they have, in fact, been in that similar situation before. Tell them This time is just like that time basically tying the past and the future together for them. And finally, explaining just how this time and last time are the same. The last pattern we can use is level shifting which is basically telling the prospect something like I hear what you re saying about the price being a little low and I think what we re really talking about here is freedom. Then you go on to show them how you can provide them with that freedom and how the freedom overshadows the pricing difference. Well, with that, I have to say See you soon and I hope to see you again at one of our future Mike Ferry Events! The Mike Ferry Organization Page 30 of

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